25 July 2014
My friend is executing certain new work with public ltd company. He is paying service tax on 40% of gross amount. under partial reverse both S.P and S.R are liable for Service tax what is tax liability of S.P. and S.R please clarify. in this case is 50% service tax to be paid on Invoice pls let me know.
26 July 2014
Civil work of erection is being executed under contract for six months.It is continuous work and the Service Provider will submit running Bills to Service Recipient for payment.Service tax to be paid to be paid both by Service Provider and Service Recipient as per Partial Reverse Charge 50% of Service Tax to be Service Provider and 50% by Service Recipient. Pls clarify 1. what is service tax liability of Service Provider. 2.There is no clause in the works contract for periodical raising of invoice he will raise running Bills as and when portion of work is completed. Service Provider is Individual and Service Recipient is Corporate Body.The turn over in this year is yet to begin. His first Bill raised is around 1.5 crores. what is point of Taxation. a. 14 days from date of Invoice, irrespective of date of payment or 5th of next quarter or 14 days from date of payment. should the service provider should opt for composition on works Bills at 4.994% tax on gross amount or pay paying tax at 12.35 % on 40 % of gross amount, which is beneficial. If he has to opt for composition should he apply before works execution or may apply before making tax payment. As per the clause in works contract the amount paid is inclusive of service tax how to calculate the service tax. Thanks R.S.K.Singh
29 July 2014
Mr Sandeep Rajput, Thank you for interest in answering my query.I have some doubts, I will be thank ful if you kindly reply in this forum. 1. My friend is executing certain works like check dams, de-silting tanks, afforestation works which are carried out to protect the environment of the mining area under Rehabilitation and Reconstruction works, in the interest controlling pollution to public ltd company wholly owned by State Government. As per Notification/2012 ST dt. 20-6-12 any entrusted by Governmental company for carrying out Urban afforestation, environmental and ecological work is exempted from paying service tax,in this case work of environmental importance to give benefit to local people residing in the mining area is being entrusted by Govt. Company to contractor, whether tax exemption as er notification. kindly provide relevant Rule and citation of Ruling of court if any. thanks yours R.S.K.Singh
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